The market sell-off has increased the upcoming yields across LIC/LITs. Compared to open-end trusts, LICs can retain earnings over reporting periods which allows for a smoother distribution of dividends. Established LICs with strong profit and franking reserves are more likely to be in a position hold the current level of dividends.
Bell Potter’s Indicative NTA tracks the ‘indicative’ movement of a LIC’s underlying NTA each month by monitoring the percentage movements of the disclosed holdings and using an index to track the movement of the remaining positions. The Indicative NTA works best with LICs that have a high percentage of investments concentrated in its Top 20, regular disclosure of its Top 20, lower turnover of investments, regular disclosure of its cash position and the absence of a performance fee. We have also included an adjusted indicative NTA^ and adjusted discount^ that removes the LIC distribution from the ex-dividend date until the receipt of the new NTA post the payment date. This report is published each Monday prior to the market open and is available on a daily basis.
For full details refer to the detailed report below or click here to download your copy.